Q: Have generated record March earnings, although April seems to be declining, which is expected based on seasonality. I did start a position a few months ago,wondering if what your thoughts are going forward and if this would warrant further accumulation.
5i Research Answer:
The stock is thinly traded, but is also quite cheap at 6.6X P/E. Its momentum has been quite positive over the past few years and sales growth has been strong. It generates positive free cash flow which is mostly used to issue dividends and pay down debts. It has a growing balance sheet, debt levels are low, and profit margins are solid. We feel that this name has a lot of good qualities if one is OK with thin trading and small cap and sector risks.